Qoros Lost More Than 2 Billion Yuan in Recent 3 Years, Marketing Cost Over 500 Million Yuan

A inner staff of Qoros told reporter last week that Qoros has lost more than 2 billion Yuan in recent 3 years, which does not include PPE investment even. What’s more, Qoros spends 500 million Yuan marketing fee to Qoros 3, which is far more than single product marketing cost of joint venture companies and China owned companies.

We have reported that Qoros 3 is priced among 119.9 thousand to 167.9 thousand Yuan which is aroused widely agreement. If we watch closer to operation marketing cost, we will have better understanding of Qoros 3’s price.

From 2012 finance report of Qoros, operation cost is 673 million Yuan in 2012, which include 343 million Yuan new car R&D. Other half is management fee. Because Qoros has not launched market in 2012, it barely has no income. Net loss of Qoros is 635 million Yuan in 2012 based on finance report. However net loss of 2011 is as high as 700 million Yuan. It spends 80% to R&D, but only 20% to management cost.

Up to now, Qoros has not published its 2013 finance report yet.But according to the inner staff that it is not possible to loss less than it did before. Qoros holds many marketing activities this year besides R&D and management cost. Therefore, Qoros loses 2 billion Yuan at least for recent 3 years.

Qoros is not only invest huge capital into research, but also generous to marketing cost. A Qoros senior manager told reporter at the first Qoros Auto Technology Day in Sept this year that marketing cost of Qoros first product will exceed its opponents. According to Qoros plan, its Qoros 3 marketing fee will exceed 500 million Yuan. The company says that Qoros 3 marketing fee will exceed Beijing Hyundai Sonata (450 million Yuan), Skoda Octavia (410 million Yuan) and Roewe 350 (400 million Yuan).

Because Qoros Changshu plant is unable toachieve mass production, Qoros 3 production capacity of next year is only 10 thousand. It means that every single car of Qoros will take 50 thousand Yuan marketing cost. The inner staff of Qoros told reporter that Qoros 3 BOM cost is close to its price. Ifincluding marketing, logistics, place cost, Qoros 3 price will lose money.